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Special
publisher's profile: Banking
Virginia's top banking
officials on the economy, the banking industry and doing
business in Virginia.
The major banks in Virginia
are a driving force in the state’s economy and
a major influence on the regions they serve. We recently
interviewed four top banking officials in Virginia -
James C. Cherry (Wachovia, N.A.); G.S. "Sandy"
Fitz-Hugh (Virginia Bank of America); C.T. Hill
(SunTrust Banks); Barry Fitzpatrick (First
Virginia Bank); to find out their views on the economy,
technology and the banking industry.
It seems
that many banks in Virginia are aggressively chasing
the small business customer. Is your bank among those
going after this market? What unique qualities does
your bank possess that would be attractive to the small
business owner?
James C. Cherry (CEO, Mid-Atlantic
Bank, Wachovia, N.A.): In 2002, Wachovia had the
largest number of small business loans (in Virginia)
and the small business customer is a very important
part of our business - and we are all courting that
segment of the market. Small businesses are the economic
engines on the commercial side and most people think
of big business as where all the jobs are, but in most
cases it's small businesses that account for most of
the jobs in our economy. So it is a very important part
of our economy and you can't be successful (as a bank)
unless you are addressing that market.
Smaller banks are going
to have a difficult time competing (with larger banks)
because a lot of products and services once reserved
only for the largest business customers are being pushed
down to where the small businesses can take advantage
of them. For example, the ability to manage your affairs
online has been around for years for large businesses.
The corporate treasurers
of large companies have been able to access their information
by computer and use that information to manage their
finances. But now, that ability is extended all the
way down to an individual. That is one of the huge benefits
Virginia has realized by the mergers. And you could
say that some costs have gone up (with the mergers)
but I would argue that costs are about the same but
the availability of custom features has gone way up.
You are getting a lot more
for the same price. In fact, it would be hard to compare
(products offered in the past by banks) because when
you really look at the features, it's a different product.
Now, you can still get the old products, but when you
do a comparison, you're going to choose the new products
with their new features.
Barry Fitzpatrick (Chairman,
President, CEO, First Virginia Bank, N.A.): First
Virginia has always sought better methods of meeting
the needs of small business customers. As I mentioned
earlier, First Virginia has built a technological platform
and an array of products and services that are second
to none for this specific market. And an extensive branch
banking network and locally based management teams supports
all of our services. First Virginia's commercial services
extend from payment processing and lockbox services,
to every imaginable lending capability. In addition,
our full service insurance company and our asset management
professionals can meet the needs of every business,
large and small. As you can see, we have created a one-stop
shop for the business owner. First Virginia's commitment
to the activities of local business is based on our
belief that commerce is the critical element that brings
vitality to our communities and opportunities to the
consumer.
G.S. "Sandy" Fitz-Hugh,
(President, Virginia Bank of America): Some small
banks specialize in small business, but some don't use
SBA. That's a big tool for us. We are the largest SBA
lender in the country and the largest in Virginia. We
find that most of the small businesses that open these
days need some type of assistance such as loans guarantees
and the like, and SBA is the natural vehicle.
C.T. Hill (Chairman, CEO, SunTrust
Banks, Inc.): One of the things we're working hard
to do in the small business sector is to have bankers
available for small businesses to talk to in real time
and in person. We have people on the street making calls
to small businesses, serving small businesses and willing
to sit down and talk about needs. In many cases, talking
about their personal as well as their business needs.
Lots of times if you are in the small business world,
there is a blur between personal finances and company
finances. So you have to look at the whole package and
offer what is best for the business owner/operator.
Once we establish that relationship,
we match a solution to their individual needs, versus
trying to do it from a call center. So I get back to
our local delivery model while at the same time developing
products and capabilities for those who want to bank
more online. You've seen several press releases lately
about new added capabilities we have added - something
called a small business resource center. It (the call
center) is a Web-based application that people can go
in and interact with. You can do a lot though the Web
site and yet if you want to talk to a person, you can
also do that.
Lots of times if you are
in the small business world, there is a blur between
personal finances and company finances. So you have
to look at the whole package and offer what is best
for the business owner/operator.
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